Editorial | Rebooting the economy

The impact of COVID-19 on the Jamaican economy is aptly illustrated by empty beaches and quiet airports, for when the tourists stop coming and there is a dive in international travel, everything slows down.

The economic shocks predicted by the International Monetary Fund (IMF) are already reverberating throughout Jamaica, even as the Government tries to balance the delicate act of containing the spread of the virus with reopening for business.

The discussion that needs to be taking place right now among sector leaders is what needs to be done to reignite the local economy and get Jamaica moving again. The other question is which sectors warrant the push to guarantee a quick economic recovery.

Some countries predict that the COVID-19 shutdown will last throughout the summer, till September, and perhaps beyond. If that proves right, then farmers, ground transport operators, craft vendors, and others who rely on the hospitality business will be in for a rough time.

Rebooting the tourism industry, in particular, and the economy, in general, will not be easy as there is every belief that the concept of social distancing will become the new way of life and that the fear and cost of flying may continue to keep people at home.

Promote manufacturing

Therefore, if ambitions of reigniting the Jamaican economy are to be satisfied, in all likelihood, the Government may have to introduce certain initiatives to kick-start tourism and throw a lifeline to other critical industries. The harsh reality is that many businesses may not survive COVID-19. The tourism product has demonstrated a resilience and ability to bounce back, and hopefully, it will happen this time again.

Is this the time when greater attention ought to be paid to manufacturing? Though it’s way too early to assess the potential of post-COVID-19 demands, recent shipments of Jamaica-manufactured bleach to the Cayman Islands and toilet paper to the United States spark hope that maybe more Jamaican brands could find their way on to shelves abroad, thereby resuscitating local manufacturing.

Our local technicians have also demonstrated that great talent abounds in the area of rehabilitating medical equipment and personal protective gear. There are opportunities to equip our healthcare workers and, perhaps, satisfy demands in other countries.

For years, our leaders have been talking about getting the workforce ready for the technological revolution in a rather half-hearted way, but technology has been brought sharply into focus during the COVID-19 outbreak as more workers are being forced to work from home. A huge shift has been made to digital solutions as people exercise options like meeting on Zoom and conferencing on Skype.

The lockdown experience has given insight into what the future will look like and has signalled that much more technical education and preparation are needed to get Jamaica to a place of efficiency and effectiveness. It is way past time for our institutions to focus on preparing a workforce ready for the digital space.

Agriculture, with the small farmers forming its backbone, has been playing a huge role in ensuring that there is adequate supplies of food during the pandemic. But we note the old woes reappearing once more: supplies aplenty but no marketing plan to get food to the people who need it most.

As demand dwindled in the hospitality sector and restaurants closed, the focus shifted to supermarkets, groceries, and wholesales. It is clear that effective management of a pandemic must include the transport and marketing arms of the agricultural sector to ensure the safe and efficient movement of farm products. That strategy should also include a ban on the importation of cheap food that only serve to undermine the local sector.

The difficult manoeuvres required to reboot the Jamaican economy have to be well designed and coordinated, but even before the rebooting plans are unveiled, the Government has to restore confidence in the financial system to motivate people to get going again.